Labor ignored own advice on Senate reform

Federal Labor's decision to oppose Senate voting reform ignored the recommendation of an internal party review that was established by leader Bill Shorten to advise on what position to adopt, sources have revealed.

The Australian Financial Review has been told that with the shadow special minister of state, Gary Gray, leading the argument to support the changes, and Senators Stephen Conroy, Sam Dastyari and Penny Wong leading the fight against, Mr Shorten had the issue independently examined by frontbencher David Feeney, who is a former senator and former Victorian ALP state secretary.

In advice handed to the Opposition leadership group two weeks ago, Mr Feeney backed Mr Gray's view that Labor should support changes to Senate voting to end the practice of microparties gaming the preference system and landing a Senate seat with a tiny primary vote.

Labor MP Gary Gray led the argument in the party for Senate voting reform. Alex Ellinghausen

Mr Gray and Mr Feeney were comprehensively rolled in a shadow cabinet meeting on Monday night and on Tuesday caucus ratified the decision. One MP, Allanah MacTiernan, spoke out saying Labor should support the changes, which include optional preferential voting above the line in the Senate and an end to group voting tickets which enable the complex preference deals.

Special Minister of State Mathias Cormann said Labor was clearly motivated by politics.

"Bill Shorten knows that our proposed reforms of the Senate voting system are the right thing to do for our country, but he just doesn't have the strength to stand up for what is right."

Senator Conroy told the Financial Review that he vehemently opposed optional preferential voting and Labor, if elected, would seek to rescind the laws.

The government, the Greens and independent Senator Nick Xenophon have the numbers to pass the changes, which they will do before Parliament rises for seven weeks on March 17. This will keep alive the option for the government to hold a double dissolution election in July or earlier.

Labor's opposition, in this sense is academic.

During Tuesday's caucus meeting, Mr Gray, who has offered his resignation from the frontbench due to his decision to retire at the election, put forward the shadow cabinet decision which he opposed. During question time, he sat on the backbench.

Senator Wong told caucus the changes would disenfranchise the 3.3 million people who voted for microparties at the last election and would deliver the Coalition a majority 38 senators.

Phillip Coorey writes on news specialising in policy, politics and the budget. Based in Canberra, Phil is chief political correspondent. He previously worked for The Advertiser and The Sydney Morning Herald. He is a two-time winner of the Paul Lyneham award. Connect with Phillip on Facebook and Twitter. Email Phillip at pcoorey@afr.com.au